Key Highlights
- Corteva’s Seed net sales grew by 7%, and organic sales increased by 9%.
- Crop Protection net sales decreased by 10%, and organic sales decreased by 12%.
- Operating EBITDA was $2.99 billion, a 5% improvement over the prior year.
- Operating EPS was $2.54 per share, up 2% compared to the prior year.
- Management has affirmed that full-year 2023 net sales and earnings guidance will remain the same.
Corteva Agriscience, an agriculture company specializing in crop protection and seeds, has released its financial results for the third quarter and year-to-date (YTD) 2023. The company reported a 1% decrease in net and organic sales for the year up to date compared to the same period last year. However, gains in North America and EMEA have been offset by Latin America and Asia Pacific declines.
Segmental Performance
- Seeds: Seed net sales grew by 7%, driven by strong demand for Corteva’s proprietary seeds, particularly in North America and EMEA. Organic sales increased by 9%, reflecting both price and volume growth.
- Crop Protection: Crop Protection net sales decreased by 10% due to volume declines in Latin America and North America. Organic sales decreased by 12%, reflecting both price and volume declines.
Regional Performance
- North America: Net sales grew by 3%, driven by strong demand for Corteva’s seeds and crop protection products.
- EMEA: EMEA net sales grew by 2%, driven by strong demand for Corteva’s crop protection products.
- Latin America: Latin America net sales decreased by 8% due to lower corn volumes.
- Asia Pacific: Asia Pacific net sales decreased by 5% due to lower corn planted area.
Guidance
Management has affirmed that full-year 2023 net sales and earnings guidance will remain the same. Net sales are expected to be in the range of $17.0 billion to $17.3 billion, and Operating EBITDA is expected to be in the range of $3.25 billion to $3.45 billion. Operating EPS is expected to be in the range of $2.50 to $2.70 per share.
Outlook
Corteva Agriscience is optimistic about the long-term outlook for the agriculture industry. The company believes that the global population will continue to grow, driving demand for food and that farmers will continue to invest in technology to improve their productivity. Corteva Agriscience is well-positioned to capitalize on these trends with its strong portfolio of seeds and crop protection products.
Corteva Agriscience Latest News
Corteva Files Lawsuit Against Inari To Safeguard IP (2023/09/29)
Corteva has filed a lawsuit against Inari Agriculture, Inc. and Inari Agriculture NV for allegedly obtaining its protected seeds through a third-party agent, making minor genetic modifications to the biotech traits of these seeds, and seeking U.S. patents for the modified traits. The lawsuit is significant as it highlights the importance of protecting intellectual property in the agricultural industry, where innovations take decades and substantial investments to develop.
Corteva’s Reklemel: Fighting Against Nematodes (2023/09/14)
Corteva Inc. has developed a new nematicide called Reklemel active in protecting food and row crops from nematodes. The US Environmental Protection Agency (EPA) has given Reklemel a Reduced Risk tag for its effectiveness and reduced usage rates. It has also won the National Association of Manufacturers’ Sustainability and the Circular Economy Award. Reklemel will be launched in the US, India, and Mexico by the end of 2023, and Corteva is seeking regulatory approval in other markets. Reklemel offers farmers flexibility in application and can augment yield potential while mitigating nematode-induced damage and preserving soil organisms.
Reports Mixed Performance In Its Financial Results (2023/08/04)
Corteva Agriscience (NYSE: CTVA) has released its Q2 and H1 2023 financial results, which showcase a mix of growth and challenges across its different segments. The company saw a 1% increase in net sales during H1 2023, with organic sales rising by 2%. The Seed segment was the main driver behind this growth, with seed net sales increasing by 8% and organic sales rising by 9%. The Crop Protection segment, however, saw a decline in both net sales and organic sales, down by 9%. Corteva’s management has revised its full-year 2023 guidance for net sales, Operating EBITDA, and Operating EPS. The CEO highlighted the company’s growth and innovative position, with new product announcements and exclusive agreements.
Corteva Agriscience and Bioceres Crop Solutions Join Forces (2023/07/19)
Corteva Agriscience and Bioceres Crop Solutions have partnered to introduce natural-based agricultural products in Europe. The collaboration aims to meet the growing demand for sustainable farming practices by addressing societal and political demands for environmentally friendly products. The companies will introduce a cutting-edge bioinsecticide developed by Bioceres’s subsidiary, Pro Farm, to the European market, once they have secured the necessary registrations. Corteva Agriscience will exclusively distribute the product in Europe through its Seed Applied Technologies team and apply the technology to its Pioneer® brand seed products. This partnership benefits farmers and contributes to the long-term viability and resilience of agricultural ecosystems.
Enhancing Corn Disease Resistance With Corteva’s Breakthrough (2023/06/13)
Corteva Agriscience has published groundbreaking research confirming the natural movement of disease-resistance genes within the genome of corn plants. This can help in utilizing new breeding techniques to combat plant diseases, improve crop resilience, and enhance yield potential. The research demonstrates that gene editing tools like CRISPR can imitate this natural process, allowing for the relocation of multiple disease-resistance genes. This breakthrough can potentially accelerate plant breeding progress and deliver high-performing agricultural products to farmers.
Corteva Agriscience Unveils Bexoveld™ (2023/05/10)
Corteva Agriscience has named its latest herbicide Bexoveld. The herbicide, developed to combat broadleaf weeds in cereal crops, will be launched in North America in 2028 and in Europe by 2030, pending regulatory approval. The product is a third-generation 6-Arylpicolinate (6-AP) herbicide, with a low-dose use rate and minimal crop restrictions in the following season. Corteva plans to offer Bexoveld in pre-mixed formulations alongside other leading Corteva herbicides.
Corteva Q1 2023 Reports Show 6% Increase in Net Sales (2023/05/04)
Corteva Agriscience reported a 6% increase in net sales in Q1 2023, with organic sales up by 10%. Seed sales grew by 7%, while crop protection sales increased by 5%. The company’s GAAP income and earnings per share (EPS) from continuing operations were $607 million and $0.84 per share, respectively. Corteva has increased its full-year 2023 guidance, with net sales expected to be $18.6 billion to $18.9 billion, and operating EPS projected to be $2.80 to $3.00 per share.
Corteva Launches Novel Fungicide Adavelt Active (2023/05/29)
Corteva Inc. has launched Adavelt Active, a novel fungicide that protects against crop diseases and will be available for use in lentil crops starting in 2023. The product is built on the discovery of Inatreq active, a natural-origin fungicide. With Adavelt active, farmers can simplify fungal control efforts, reduce resistance risks, and protect crops’ yield potential and quality.
Corteva to Launch Vorceed Enlist Corn Products (2023/04/08)
Corteva Agriscience, a leading agriculture company, has announced its plan to commercially launch Vorceed Enlist corn products to help farmers better manage their corn rootworm acres while providing the added benefit of controlling late-season emerged broadleaf weed pressures. Vorceed Enlist corn technology will be available to U.S. farmers through the exclusive Corteva Horizon Network in areas of high corn rootworm pressure in the Corn Belt. This new technology will give farmers more flexibility in managing their crops and enable them to achieve better yields with less stress.
Corteva Inc. Reports Strong 2022 Financial Results (2023/02/03)
Corteva Inc. (NYSE: CTVA) recently reported strong financial results for the 4th quarter and full year of 2022. Despite facing cost inflation and supply chain issues, Corteva delivered double-digit growth in its operating EBITDA and over 200 basis points of EBITDA margin expansion. The company attributes this success to its innovative portfolio, strong market positions, and disciplined execution. Corteva is focused on becoming the leading global integrated agriculture technology solutions company and has plans to invest in its technology pipeline to achieve this goal. The company expects net sales to range from $18.1 billion to $18.4 billion and operating EBITDA to range from $3.4 billion to $3.6 billion for 2023. Corteva’s future looks bright as the outlook for agriculture fundamentals remains robust. The company is well-positioned to take advantage of market opportunities.
Image provided by Corteva Agriscience
